Rumors are, Google is talking to YouTube(the most popular video sharing site) for a buyout, according to Michael Arrington of TechCrunch. The price? $1.6 to $2 billion according to his sources. And, if rumors are not just rumors, it will be a huge deal. However, the deal is not final yet.


Let's talk about some aspects of it.
Definitely google video is lagging behind YouTube in number of customers and the video database size.
The cost is not too much for something like Google Inc. and alone the number of customers YouTube has, is worth its cost.
Google can earn more bucks by its video ads program alone on this huge database and number of users.
Now, some negative aspects.
Google folks have to be aware of the fact that the minute they buy YouTube, they are going to have to deal with lawsuits by truckloads, which could cost them money, but more importantly distract them from their core business. Anti youtube lobby is waiting for youtube to be bought and than file a suit against that big pcoket company. The company breaks lots of copyrights.

you can read detailed story on a wall street journal article by Kevin J. Delaney.